Europe contributed greatly in the market sales of Maruti Suzuki. In fact 70% of the Maruti Suzuki’s export market was due to Europe, which has now dropped to 30% due to the ongoing economic crisis. Due to this slippage Maruti Suzuki has now set its sight to get establish in South Africa. This setup will also generate employment for the locals and hence increased job opportunities.
After Tata motors and Mahindra & Mahindra, now Maruti Suzuki is also all set to establish their production base in South Africa. The feasibility studies are being carried out by the company officials and it will take atleast 3-4 years to be well established as the company is yet to finalize plans.
It will be comparatively easy to set up a manufacturing base in SA, as it is one of the largest export markets for Maruti Suzuki India. Apart from this, company is also planning to launch LCV (Light Commercial Vehicle) by 2015 and it is also expected that Maruti may start the production of LCVs first in SA.
Just like in Indonesia, the production base in SA will also be named Suzuki Motor Corporation. It may create an impact on the car companies which have already established production base in SA as Maruti Suzuki has also became a big market. As the growth of the car sales are on the way of increasing, it is a golden chance for Maruti Suzuki to rule over in the market.